Issue - meetings

Council Tax and Budget

Meeting: 07/03/2022 - Council (Item 5)

5 Council Tax and Budget pdf icon PDF 135 KB

Please note that this report will be updated following the meetings of the Scrutiny and Overview Committee and the General Purposes and Audit Committee scheduled to be held on the 1 and 3 March respectively. The report will be further updated once the Council has received a decision from the Secretary of State on its request for a capitalisation direction.

 

a)     Questions to the Leader

 

To last for a total of 15 minutes, the first three minutes available for announcements from the Leader.

 

b)     Questions to the Cabinet Members for Croydon Renewal and Resources & Financial Governance

 

To last for a total of 15 minutes, the first three minutes available for announcements from the Cabinet Members.

 

c)     Scrutiny Business Report

 

To last for a total of 10 minutes, the first two minutes available for announcements from the Chair of Scrutiny and Overview Committee.

 

d)     Council Tax Debate

 

The mover of the budget recommendations shall have 10 minutes to speak, followed by the Leader of the Opposition who shall have 10 minutes to speak. There shall then be five further Members from each group called to speak for no more than three minutes each. The debate shall conclude with a right of reply from the Leader of the Council or other Cabinet Member for not more than five minutes.

 

At the conclusion of the debate the following recommendations will be taken through a recorded vote:

 

1.3       1.99% increase for Croydon Services in 2022/23 (in line with government’s core spending power assumptions) as detailed in Section 10 of the report and Appendix 1E;

 

1.4       A 1.00% increase in 2022/23 for the Adult Social Care Precept (in line with government’s core spending power assumptions) as detailed in Section 10 of the report and Appendix 1E; and

 

1.5       To note the draft Greater London Authority precept on the Collection Fund and increase of 8.8% as set out in Appendix 1F.

 

Additional documents:

Minutes:

Before discussion of the item the Mayor reminded all present that an additional recommendation had been included in this item, asking Council to note a capitalisation direction letter from the Government.

 

Questions to the Leader

 

Members were then offered the opportunity to submit questions on the Budget to the Leader.

 

Councillor Jason Perry asked if the Leader regretted agreeing to the formation of the myriad of subsidiary companies that the Council was responsible for.

 

The Leader responded that the administration had faced significant challenges over the last 16 months. For example, not having had sufficient oversight of its own companies; but that that had not deterred it from putting the Council on a much better financial footing. The Leader pointed out that the Council now had proper oversight of its interests, that the budget was projecting an in-year underspend, and that it had a record of delivering £44m of savings at the end of the financial year.

 

Councillor Perry submitted a supplementary question, asking if the administration had had sufficient oversight when it agreed to companies being formed, and of the tangled web of accounts which had left a £73m hole in its budget for the next year.

 

The Leader responded that it was not only the responsibility of the majority group at the time for making decisions on the options put to the Council, but that non-executive committees with members from all groups had contributed to these decisions being made. The Leader also pointed out that there had been a lack of professional advice around the refurbishment of Fairfield Halls when the report had been submitted to Cabinet, and that members of the Chamber had not been properly informed of all the risks at the time.

 

Councillor Nina Degrads then submitted a question to the Leader, asking how this budget provided investment in services, residents value, and priorities the most, to which the Leader replied that the management and implementation of the budget across the council had enabled the administration to protect frontline services that residents valued. The Leader mentioned that they had focussed on making savings in areas that affected residents the least, such as building use and senior staffing. The Leader went on to say that there was growth projected within the budget which could be used to support Special Education Needs, carers, and youth provision, all of which were top priorities identified by residents.

 

Councillor Lynne Hale then questioned the Leader, asking at what point she was aware that the reason Grant Thornton, the Council’s independent accounts manager, was not able to sign off the 2019-20 accounts was due to their concerns about the treatment of £114m related to Croydon Affordable Homes and Croydon Affordable Tenancies.

 

The Leader responded that these issues had featured in Scrutiny and Overview Committee meetings, General Purposes and Audit Committee meetings, and Cabinet meetings, and that bank reconciliations and Croydon Affordable Homes had been highlighted in a paper that had gone to Cabinet in December. The Leader asserted that it was  ...  view the full minutes text for item 5